Miami Pre-Construction Investing

What is Miami pre-construction investing?

Miami pre-construction investing, simply put, is the purchase of a condominium, house, or townhouse, in the Miami area, before the actual construction begins. Usually, when a developer is looking for backing (money to build) for some sort of project, the banks will only supply a loan if they find enough interest in the project. The builder or developer will then sell parts, or units, of the proposed structure to those wanting to buy a home or just invest. The more the developer sells, the more it is interpreted as interest in the development project. Thus in order to get people interested, the sales will, at first, be at quite a bargain. As the building progresses, the cost per unit goes up. Those that bought at the very onset of the building program will usually see a good profit. That is, if they decide to sell closer toward completion. Some hold onto their acquisition giving them a great condo, for example, at a much lower price than that paid by someone who bought in, say, halfway though, or at the end of construction.

How do you profit from such a Miami pre-construction investment?

In most cases it will work something like this: Suppose you are interested in investing in condominiums. You find a developer that is looking for someone to buy a condo. The building has not been built yet, but you can pick the condo from plans and artists' drawings. At this pre-construction point there is usually quite the savings. Since the percentages vary, exact figures are not available. Having purchased your Miami pre-construction investment, you now have the option of reselling it closer to the end of the building's construction when the remaining condo units have gone up in price, or you can hang on to it, live in it for a while, and sell it in the future. Regardless of when you decide to sell, the price, by then, will have risen enough that you will not only recoup your initial cost but make quite a healthy profit. There is also the option of renting the unit for a more long term income. In fact, some people will purchase two, three or more units, and rent them out. This, for the individual investor can lead to financial independence… all from an initial Miami pre-construction investment. For the builder, it has the added advantage of selling large blocks of units, and putting the responsibility of finding occupants on someone else. Thus these kinds of Miami pre-construction investment folk are not only sought after but receive extra bonuses and savings while they earn profit!